Digital-first consumer brands group THG has received approval from the Financial Conduct Authority (FCA) to change the listing category of its ordinary shares. 

The beauty brands e-tailer called it a “strategic move” will see THG’s shares transition from the equity shares (transition) category to the equity shares (commercial companies) category on the ‘Official List’ maintained by the FCA. 

The transfer reflects THG’s “transition to a more established and stable listing category whilst making shares eligible for inclusion in the FTSE UK Index Series, raising the company’s visibility and supporting its strategic goals”, it said. 

THG also said the new listing category “imposes higher standards, providing increased protection for investors, especially regarding significant and related party transactions”.

Its previously voluntary adherence to certain corporate governance and regulatory standards will now become compulsory, “ensuring robust compliance”, while adding: “The board has extensively consulted with shareholders and concluded that this transfer is in the best interests of the company and its shareholders. The board remains committed to the highest standards of corporate governance and will continue to report against the provisions of the UK Corporate Governance Code following the transfer.” 

Matthew Moulding, CEO of THG, said: “We look forward to the group being eligible for inclusion in the FTSE UK Index Series for the benefit of shareholders and the business.” 

The company had previously been criticised for its corporate governance and has faced more than one shareholder revolt in recent years. But it has tightened up its policies noticeably in recent periods.